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Technical efficiency of Spanish manufacturing firms: a panel data approach


  • Ana Martin-Marcos
  • Cristina Suarez-Galvez


This paper estimates the levels of technical efficiency reached by Spanish manufacturing firms, through an econometric estimation of frontier production functions for fifteen sectors of activity, and also, obtains other relevant technological measurements of these productive processes such as the scale and the technical progress parameters. The methodology used is the panel data methods (Schmidt and Sickles, 1984). The statistical source is provided by the Survey on Business Strategies (Encuesta Sobre Estrategias Empresariales), a panel of data covering 855 Spanish manufacturing firms observed over the period 1990-1994. Our econometric results confirm the great heterogeneity in the firms' efficiency, the predominance of constant returns to scale and the great rate of technological progress.

Suggested Citation

  • Ana Martin-Marcos & Cristina Suarez-Galvez, 2000. "Technical efficiency of Spanish manufacturing firms: a panel data approach," Applied Economics, Taylor & Francis Journals, vol. 32(10), pages 1249-1258.
  • Handle: RePEc:taf:applec:v:32:y:2000:i:10:p:1249-1258
    DOI: 10.1080/000368400404407

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    References listed on IDEAS

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    Cited by:

    1. M. Diaz & Rosario Sanchez, 2008. "Firm size and productivity in Spain: a stochastic frontier analysis," Small Business Economics, Springer, vol. 30(3), pages 315-323, March.
    2. Margono, Heru & Sharma, Subhash C., 2006. "Efficiency and productivity analyses of Indonesian manufacturing industries," Journal of Asian Economics, Elsevier, vol. 17(6), pages 979-995, December.
    3. Yélou, Clément & Larue, Bruno & Tran, Kien C., 2010. "Threshold effects in panel data stochastic frontier models of dairy production in Canada," Economic Modelling, Elsevier, vol. 27(3), pages 641-647, May.
    4. Maria Angeles Diaz Mayans & Rosario Sánchez, 2012. "Are large innovative firms more efficient?," EcoMod2012 4454, EcoMod.
    5. Alexander Schiersch, 2013. "Firm size and efficiency in the German mechanical engineering industry," Small Business Economics, Springer, vol. 40(2), pages 335-350, February.
    6. Mabel Pisa & Rosario Sánchez, 2016. "Work Incentive and Productivity in Spain," Prague Economic Papers, University of Economics, Prague, vol. 2016(1), pages 99-111.
    7. Ivan Stoykov & Paraskeva Dimitrova, 2003. "Modelling Firm Activity," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 3, pages 3-24.
    8. Quirós Romero, Cipriano & Rodríguez Rodríguez, Diego, 2010. "E-commerce and efficiency at the firm level," International Journal of Production Economics, Elsevier, vol. 126(2), pages 299-305, August.

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